Viewers just waking up in the united states. I mark barton. And im caroline hyde. This is the pulse, live from bloombergs European Headquarters in london. Murdoch is reviving his plans to create a europe paytv empire. For more, were joined by reporter ws deals what is murdochs plan here . We dont know it is ending is. Her greatcording to reporting. Acording to fox, he has about 37 stake in bskyb. In skya 55 stake deutschland. Italian and the german sky providers are sold to bskyb. Then they would have inevitability to negotiate advertising and get access, the rights and programming rights on the backend. You have one unified company that can have a footprint in italy, germany and u. K. Heres interesting thing, murdoch would still only have a Minority Stake in that company, unless these are cash and stock deals. Then do you get the majority a majority percentage. What we will be asking in the next couple of days is what the regulators have to say . They can throw a spanner at any time. Of course, it is always a challenge when youre dealing with multiple jurisdictions, as well as when youre murdoch dealing with the u. K. Associations. Ittried this before and didnt work out. The scope of ambitions are certainly european wide. You hans,nk will it make it a stronger unit to be able to get the programming into this to the empire . Definitely. It is good for fox as well. Theyre getting out of the paytv business if they do this and will be focusing on entertainment and production. Of course, it is a very interesting question, does it lead us into the battle of the billionaires. Are we going to see more of murdoch against malone. Malone spent that almost 50 billion in europe. Onsolidating his media empire they have more subscribers than bskyb does. If bskyb acquires sky , theyhland and sky italia come pretty much neck to neck with each other. Hans, does is leave murdoch with . Talk about the split of the business. It could leave him with three companies. Into the fox corp. Component, which is a broadcast and cable. Of course 21st century 20th century fox studios. This is the content side of it spaperhis is the new cited. These companies would be more streamlined. Interesting thing about that is that if you wanted to sell 10 would make a more natural target for a company Like Vodafone that wants to get into more distribution, offer packages to consumers. By packages i mean something that has broadband, mobile and television. They could potentially do a vodafone are a company Like Vodafone could take over bskyb with all these tentacles in the household on the content area we are really getting more pared down companies. It may be more attractive to investors, or more attractive for potential acquirers. Theuth, talk to us about m a landscape. Weve are you talked about the battle of the billionaires. Sparkse see more, and a . More m a sparks absolutely. The big question now is whether murdoch is looking to exit. I think to the broader m a seen volumes have of they havent seen since 2007, maybe earlier. If deals like pfizer and astra go through, confidence is back right now. Once this goes through, we will see a lot more potential scenarios coming in. In general, it is a great time to be doing deals in europe. There is no guarantee that this will happen. Is like getting your reception on your sky receiver, mark. Youre always wondering whether or not you will get it and youll be able to see your beloved football team. Ans and ruth. Sundays secession vote in the east of the country has been denied to as illegal by kiev, by the u. S. And by the eu. Moscow, on the other hand, says it respects the will of the people. Ryan chilcote has a latest. Ryan, and look second overwhelming support for selfrule. What does this mean . There werent any independent monitors. It really means what russia says it means in some ways. We just heard from the Russian Foreign minister saying that russia respects the will of the ukrainian people the to pardon his vote. That is different than saying that russia recognizes the results of the vote. He went on to say they did note the high turnout in the vote. The separatists Say Something or 90 of people it could of taken part in the vote did. Ukrainians dispute that saying more like 40 of the people. The point here is it looks i can Russian Foreign minister is trying to encourage the Central Government of ukraine to sit down at the table with the separatists. What we really dont know, and this is the big issue with this is, what do the people, the separatists in the eastern part of ukraine intend to do on the back of his vote . This vote asked them if they wanted selfrule. Is it just a bargaining chip in negotiations with the Central Government for more autonomy within ukraine . Is it that they want to become an independent state . Or, would this be about rejoining russia, something that theoretically russia might be interested in. Our corrections pretty muted at this point. People still trying to figure out really what this means. You talk about market reaction. We have results of a global poll. Many investors are very concerned about the opportunity in russia, and actually looking their investment. When investments making about this . The market is down a little bit now. I think the thing is to take a look at last week heard last week, russian stocks you have to go back to the week were russian stocks did better. They had no intention that the vote should not go forward. They didnt pull her to expect and border. Markets fact that the saw a way you have to keep in mind, russian stocks did wonderfully last week. Thes not forget pricetoearnings ratios. These are still the cheapest option the world on a jerk in any major stock market. P e ratio for emergingmarket stocks and friends, if you look at the msci is 10. Just because a bounce a little bit over the course of one week, i guess means they have a lot longer to go. Ukraine, pulse of thank you very much indeed. 800 million eligible voters took to the polls for over six weeks, with results expected on friday. Lets head over to mumbai. What is the mood like on the ground today . Well, is definitely a high decibel election drama. It is in its final lap today. It has been the longest election on record for the worlds biggest democracy. What is in store today . Are trying toates voters. Illion. Hat will happen in the city modi will be battling it out with the antidraft politicians. The final results will be on a friday. We have exit holes coming in this evening. Hasrest of the country turned out in some record numbers. Party could just muster a majority with its coalition partners, resulting in a switch from a congress led government. Party hasthe ruling seen its popularity following due to issues such as soaring inflation and draft cases, and some of the worst records of growth in the last two decades. That, modi is pushing his reputation. The drama seems far from over. Theexcitement is on with equity markets. We saw a record closing on friday with the markets everyone factoring in the kind of selection outcome. Fernanda, thank you. Up next, Eastern Ukraines selfrule vote take center stage in the crisis as moscow may face more sanctions. We will get Market Insights from the head of the emergingmarket strategy. That is up next. Will come to the pulse. Lets get over to Jonathan Ferro for the fx check. We will have a look at the russian currency. Translating into weaker european ruble. Peaks you see here are record lows for the russian ruble. The appetite for russian assets, ruble denominated assets, are hardly near any kind of hide. The worlds of largest economies, 56 say russia. Lets stay on the theme of russia and the ukraine. Join us now for more is the head of the emergingmarket strategy generale. It is amazing the various viewpoints coming and of what will happen to the ukraine. It seems that separation is winning in denesque and luhansk donetsk. Key toourse, it is still know what will happen after this referendum. We are all trying to get a sense but things went relatively well. I dont see that referendum as a sign of escalation of this crisis for now. You confident there will be no escalation of his crisis . It means there will be no the further sanctions . The threat of the sanctions is an important leverage in this crisis. Russia has a lot to lose if that is not navigated carefully. That is also why i think we are not going to see any escalation. Which is at the beginning of the process, in a way. What about the election on may the 25th for the ukraine . This seems to be the date many have focused on. Do you think that could go without escalation as well . Which way will we see ukraine voting . Will adjust our to see certain . Lexus is going to be the major event to watch. The range of possible scenarios is very wide, so for little visibility here. Is going to be a diplomatic gain. Etween russia and the west so far, what ive seen over the past week or so, this war of words actually subsided. I would take that as a mild positive, even though on the ground there are still a lot of uncertainty. How should we take the five percent gain in the russian benchmark stock index last week . The micex is slightly down today. What is the message that the micex is telling us right now . What i hear that everybody is bearish on russia, maybe i am thinking at some point it will be time to buy. Positioning is actually quite heavy on the british side right now. I would not be aggressively bearish on the ruble anymore. A technicalg to be turnaround at some point. Youre a contrarian when it comes to positioning come argue . As we know, technical factors have a huge impact on markets. Look at what is going on in the eurozone. Those are many technical moves. We see that kind of fencing on the amateur market side. Just a few weeks ago you said your post on the stocks are particularly are you optimistic, ras any areas that you is only seeing is, it now that investors are comfortable coming back to emerging markets after difficult times. Positioning is very light. Some other assets in some of the markets are starting to look overstretched. Emerging markets are benefiting from that. Was a message from china over saideekend . President xi we need to adopt this new normal pace of slower growth. What is the message to investors and to markets worldwide . I like that new normal. Im all for a new normal in china if this is about quality rather than quantity. If we are seeing the right ,ignals on the policy front reforms, cleaning up of the informal financial sector, was a really good signals for investors. If we are playing with six or seven percent, that is good enough. Ofwhen theyre talking opening up investment opportunities, particularly to foreign investors, you think this is a great time to be getting in. Would you be looking more at the things or assets . I think liquiditys other way to play. At the end of the day, it is still chasing the growth story. To me, that story about chinas hard landing was probably overhyped. Look the currency now. We have seen a nice bounce. ,hat you do with the currency are you bearish or the other way. I am tempted to test that regional weakness. We like having you. Certainly we get differing views from you today. Ill see opposite to it timothy ash was telling us. We like the contrarian. Pfizer has released a statement, and it is not surprisingly talking about astrazeneca. It says that the deal faces difficult challenges, but the combined company would be stronger financially. Astrazeneca says it would unquestionably create a powerhouse combination of both pfizer and astrazeneca, the combined portfolio would be better positioned to deliver value. It is speaking about u. K. Science, the fears are that pfizer would under invest in research and development in the u. K. It says the combined portfolio would deliver value. It says it is committed to investing in the u. K. Science. Key leadership will be located in the u. K. That will be important to politicians who will of course be grilling the ceos of pfizer and astrazeneca tomorrow. We will be carrying that live here on bloomberg television. Pfizer very much bring its case to the u. K. Public. Crexendo the video over the weekend. Neither coming up with a statement for politicians. Astrazeneca, up half a percent. It is Still Holding onto its gains. Time in london is 10 22. We will rush to those pfizer headlines once again. Stay with us on the pulse. Welcome back. This is the pulse live on bloomberg television. Streaming on the ipad and bloomberg. Com as well. Time for a look at the biggest stories in new energy. Providers of market data for oil and biofuels may have conspired when the ordering benchmarks for fuel cells. This comes in the wake of an International Probe of thanks. Lighthouse is going greece. Obama is seeking to make Climate Change part of his legacy. He recently announced a set of plans to promote Energy Efficiency and solar power use, including a new goal of 2 billion in Energy Efficiency upgrades to federal buildings. Shrimp shells may be the next replacement for plastic. The team developed to the bio plastics from a material which is the second most abundant organic material on earth. Did you have any shrimp and holiday . I had a lot. It is not all fake this time. It is not makeup, israel. Real. Is time for what is happening next. Were going to turn itself into a smart phone or your table into a tablet. We would take a look at these. Shaking up the model for nextgeneration wearable tech. Plus, the zero gravity lab in outer space. It circles the planet every 90 minutes and cost billions of dollars to run. We take a look at the number behind the International Space station after the break. Welcome back. This is bloomberg surveillance live this is the pulse live from bloomberg headquarters in london. Organized byum prorussian groups in Eastern Ukraine. Russian News Services says byers backed a breakaway emerge margin of 921. Meanwhile, chinese stocks rose on speculation the Chinese Government will take steps to bolster investment. The government said last week it will relax limits on Foreign Investments in listed companies. Today, president xi jinping said the nation needs to adapt to a new normal and said the government will also take timely countermeasures to reduce negative effects. Breakingly had some news from pfizer. The company said astrazeneca faces difficult challenges and that a combined company would be financially stronger. Eyes are also says it is committed to investing in the United Kingdom pfizer says it is committed to investing in the nine it kingdom and key leadership roles would be located in the u. K. Lets go to manus cranny. Fascinating, the pr offensive pfizer is taking today. An interesting debate. Astrazenecanting on by matter of law, pfizer are on the front foot. On why on the website the deal makes sense and what the motivation is. The broad stakeholders government, politics, individuals, and institutional shareholders. Inviting back immediately to what went on in the political Beast Program in the United Kingdom where the Prime Minister says, look, he is all about defendant jobs and his deputy says these assurances are not worth the paper they are written on. You mention the business secretary here in the United Kingdom perhaps best known for his involvement in the bskyb where Rupert Murdoch tried to go out for overall ownership and they have written to his department, a statement, the mission is to bring innovative therapies to patients. This goes back to the video. My interpretation is pfizer really are aggressively moving on the front foot in terms of communications with all the stakeholders. They are answering all the questions. A scientific leadership will be located in the u. K. There answering all the doubters. Whatever gets thrown at them they answer back and say, yes, we are committed. There is a fear they will slash rmb in the u. K. But they dont have a new thats good record and generating new drugs and jobs. That they did deals on the drugs out of the pipeline to preserve themselves. Obviously makes it easier for David Cameron and the u. K. Government to support the deal and clearly for future dealmaking it is important that it does not look like the u. K. Interferes politically speaking. And we do relatively keep the doors open. Britain is open for business. It will be interesting to see how pfizer lays the u. S. Angle because the u. S. Has a concern they want to reduce their tax payment in the u. S. By 3 billion. On it i was in the car willie walsh coming , mr. Cameron,ts in terms of your desire or being into interfering into a freemarket decision. Well,ther saying as please, dont get too involved. This is something for the Investor Base to make a decision on. The correct correct. The other is how british is astrazeneca . Global shareholders. A lot of products being sold outside the United Kingdom. The reason why this has turned into a political pingpong table liberalis the democrats, the tories, labour, everyone checking their half pennies worth into it, is this is about jobs. Going into the back of everybodys mind k is cap very,raft, the assurances they came from crafts. You can assure everyone for five years. You can look at after everybody for five years and then pull the chips. And the election might be on a few peoples minds. Lets talk technology. When apple introduced the iphone seven years ago it brought the touchscreen to the masters for the first time. To the masses for the first time. Gone onei startup has better but you can turn yourself into a smart phone or your table into a tablet. Elliott gotkine with this exclusive report. In the futuristic film trio ofy report, a psychics to track down criminals before they commit a crime. This persons ambitions are more modest. He wants to unchain us from devices and turn the world around us is a more interactive one. His first target, overhead projectors. You can take any one of the 50 million project others installed worldwide, 10 million shipments every year, and just transform them from a regular projected into an interactive room just like that. By putting the burden on your finger. The bird which fits on you in the finger is just half of the technology. Table. Earth to the it can also project the image of any device onto any surface, allowing you to interact with it as if you were there. Agent . Iphone to the sofa. The agent is still at the development stage. We dont show the working prototype. But impact me just at just as impressive as warnings for if you are the future. Betting on almost everything being coated with touch sensitive glass. We think the push is toward natural user interface. Voice, gesture, movement and touch are all part of that. When you think of touches specifically, maybe you have seen a toddler interact with a tablet or a smart phone. It is very natural for them. That intuitive natural nature is why we think that stays around for the long time. Covering everything in class may not be everyones cup of tea. Whatever comes out on top, Science Fiction technology looks to be heading to a screen or a surface near you. Elliott gotkine, israel. How markets are trading today. Stocksline, you see coming off of the days high. The ftse 100 and the dax in frankfurt remain positive. Stoxx 600 and positive territory as well. U. S. Futures pointed higher. The dow jones just off a record high. You hear this a lot, dont you . This has to be the most unloved bull market in history. He here bubbled this, that. 50 of investors and bloomberg poll see internet and social media stocks in a bubble and another 36 see it on the verge. That is the big debate in the u. S. Text box. In the u. S. In europe, it is the ecb of what might do next. Mario draghi having a little affect. We are down to 1. 3767. The euro in the past 12 months up by six percent. What are the ecb going to do . Bank of america says the ecb has joined the currency cold war. Say, that action is not nailed on. The next stop for this one is early june. Not talking about the ecb meeting but the First Reading for inflation for the month of may. That is going to be the driver of this at the driver of what the ecb may or may not did. Stay with us. Back with the pulse in a couple of minutes. Welcome back to the pulse live in london on bloomberg tv. The Global Investor poll is out and results show concerns raging ranging from ukraine to deflation in europe. Investors are less optimistic compared to the last edition of the poll back in january. For more now we are joined by Bloomberg Markets magazine editor. Outoes seem a sentiment there is deteriorating on many fronts. It is. I think it is in part because of a lot of headlines about russia, ukraine, it gets people worried. When they worry about that, those worries sometimes spread through the system. And increasing concern about china, for example. And also, give us a little sensitive you of what is fascinating, navelgazing, looking at themselves as an industry. Financiers are slightly worried atut what they are creating home, what tactics are deployed by players in the financial markets. We had been writing for several years about manipulation of the markets from libor, the london interbank exchange rate, more arcane benchmarks gold. Yes, and so one, and foreign currencies. Interestingly, investors are saying the same thing. The people in this poll are have bloomberg terminals, our customers. They are all, by definition, investors. They are saying, yes, this is going on. Surprising numbers. Up around 49 to 50 mark, which is quite high, which you could imagine because you are talking about your own profession. Havingy are even questions about their own profession. They were asked, for example, would you tell young people to go into finance to become investors . And i think more than 40 of the respondents said that, no. I think also what is fascinating is leader against leader. Many are concerned of course about what Vladimir Putin is doing in russia but more concern about what Francois Hollande is doing iin france. Among major economies, which it leaders do you think are disincentives to investors . Francois hollande from france comes top which is to say, worst in that category. But for very Different Reasons than Vladimir Putin who ranks right up of hollande in that category. Performer . Best whats chancellor Angela Merkel chancellor Angela Merkel from germany, always ranks highly. When you are looking at the german economy. Great talking to you. Errkets magazine stryk maguire. Lets talk more about the ball and the global economy. We have the chief economist at investec investors more more worried focus on china. Saying chinas economy in the worst shape since one 812. Adjusting in light of the president xis comments saying we must adapt to the new normal is slower expansion. Are you feeling concern as many of our poll respondents are . I think i probably am, to be fair. There is a lot going on in china. Clearly the authorities have got a multitude of bowls theyre trying to juggle and trying to establish the new normal where they have an economy less geared toward massive infrastructure and investment to something probably more sustainable in line with Greater Consumer spending. That trend that transition is involving a slowdown in growth. Of ais a little bit troublesome situation. Of course, at the same time, but the real economy shifting you got Financial Issues to to sort out as well with the shadow banking system. Is there a slowdown in key parts of the chinese Property Market . Is. E probably and how are banks equipped to handle it . There is a little going on at the same time. There are some question marks on how the authorities can manage the transition. And yet authorities continually saying we are not going to press the button, the button that leads to bigger stimulus. Is that the kind of rhetoric you want to hear . What it sounds quite sensible in the sense of if you are looking at a slowdown in growth to around seven percent or seven point cap seven points at 7. 5 per annum we are probably at that level now and slowdown on in growth is inevitable. You dont want to see chinese authorities starting to pump prime the economy because it takes you away from the new normal and also risks blowing up of the bubble by even more. It is a very fine line to be trying to trade. This week, a big week in europe. We smiled when Angela Merkel was everyones favorite within global politicians. But i wonder how mario draghi fares after his comments last week opening the way possibly to . Urther ecb action next month we have lots of gdp data this week from within the euro zone. Will it not came off course if we get strongerthanexpected data or not . It will do. t think it was a strange press conference because the first ecb appeared to be saying we are not in a hurry to take more action and the euro rose to somewhere around the 1. 40 level against the u. S. Dollar and then after that is at the governing council was comfortable and acting but wanted to see the Economic Forecast published in june before it did so. Predicatedt so much or the potential action is not really predicated on what is going on in the real economy with the shortterm indicators because we know from the past few months the economy is recovering slowly and that is entirely in line with the ecbs baseline scenario. What the ecb of courses aiming at is inflation. Inflation is well below the target, just below two percent. The two and a half year horizon, it is still around 1. 6 or one point seven percent. Any further disinflation every shock would lead to action. Where the ecb is coming from. It does not mind no inflation in the shortterm but very wary about longerterm expectations lead to at could prolonged bout of low inflation. Benchmarkn the Interest Rate, taking the deposit rate to zero. Anything more unusual, anything more unconventional or does or is it necessary just to hold that back . In tryingthe problems to forecast exactly what the ecb is going to do is theres a long list of possible options. A month ago, the ecb started fairly about qe aggressively and we have seen members of sense and scale back comments and very little, if any, discussion at last weeks press conference. What appears to be top of the policy menu is a cut in rate, the refinancing rate by perhaps 10 or 15 basis points and as you say, the deposit rate is the next territory. What we may see in addition is more liquidity. Measure istechnical the nonsterilization of the Securities Markets program which would add around 170 billion euros in the uris is the money market. The Inflation Report do they bring forward their Interest Rate expectations . Report the last intimated the first rate hike would be the middle of next year. Is it time to bring it forward maybe by a quarter to the First Quarter of next year or not . Well, Market Expectations have already done that really. And the terms of the bank of england itself, it stopped short of actually giving timebased guidance on Interest Rates. We are still reading the runes, if you like. It will be an interesting report on press coverage because the new guidance as now been activated by unemployment actually going below the seven percent level. Are looking very closely for is where the bank of , whatd stands, capacity it feels about the housing market, perhaps, and of course, what inflation projections are saying. Possibly more benign than they were three months ago. Is we are not likely to see a big switch in the way the ntc is looking a Monetary Policy but a good surprises. Phillip, thanks for joining us. Chief economist at investec. Stay with us. We are back in a couple of minutes. Will welcome back. Lets go over to Jonathan Ferro 40 fx for the fx check. 1. 40 other day down to 1. 37 right now. Mario draghi puts a lot of weight on june. Could the ecb ask . Too early to speculate about june action. But then he speculates anyway. He says if you do need new measures, a package is needed and not just a single measure such as a rate cut. Inadvertently adding fuel to the fire about what the ecb might do next. Now for a look at what we are watching for the rest of the day. We are joined by Ryan Chilcote and hans nichols. Ryan, ukraine and russia. The eu Foreign Ministers gathered today in brussels. The question is whether they will tighten the sanctions and russia. The expectations as they will, they will specifically sanction some Russian Companies something they have yet to do. Sanctioned Russian Companies but europeans have limited themselves to individual so far. But going after Russian Companies that they believe have expropriated crimean asset. Interesting to see what happened today in Eastern Ukraine but a yes vote in the referendum have any influence. These sanctions were planned well before the vote. Socgen saysst from he does not think the ukrainian crisis is going to escalate. Assessment and the people you have been speaking to . That is not my assessment but it does appear to be investor sentiment. The market open flat today on the back of those results. Yesterday the russian stock market was in fact up, best we can Something Like 10 months. Having said that, the market is heavily discounted. Pricetoearnings ratio for russian stocks is five. For emerging stocks, it is 10. Cheap stocks. Bskyb. , you are watching watching to see what 20th century fox, the was parent company, what they may end up doing it to end up successfully shedding about 10 billion euros. Eutschalnd, there is italian we will see through but Rupert Murdoch will create no one. Thats why is your hair green . Why is he hair green . I did a little Face Painting and the gold has leached into the hair. I will rectify it. We will see you tomorrow. Have a good day. And is a criminal farce, so says kiev, as the Eastern Ukraine vote for self rule. It is morning to america and we speak to the arts optimist on better u. S. Economic growth. First, Henry Paulson announced Timothy Geithner massage the financial crisis message. Good morning, everyone. This is bloomberg surveillance. Live from World Headquarters in new york. Monday, may 12. Im tom keene. Joining me, scarlet fu and adam johnson. A busything going on but week ahead. Let me start with what happened overnight. China says the banks on the new loans than anticipated and over the weekend we also learned chinas president xi jinping says of the Company Needs to adapt to a new i caught that. Pimco note. Apparently bill gross the new normal of slower growth. While chinas new normal is a lot faster than ours, it is still slowing. That is the theme. Analysts are forecasting china is heading for its weakest expansion since 1990. Poland